This current business model with Netsuite defies belief....

This current business model with Netsuite defies belief.

Spending $6 to $8 million on a sales force/administration to sell another companies product and lose money.

In the process, the CEO/board/administrators/salespeople all get well rewarded whilst the shareholders are left with a share price in tatters.



This ASX listing commenced in the year 2000.

In 20 years the share price has gone from 20 cents to 3 cents and now illiquid.

It should be listed as a personnel placement business - they have the perfect business model.

Last year the gross profit was $9,506,807 and they spent $9,207,283 to lose ($298,804)
.....and at the end of the exercise, the customers belong to Oracle/Netsuite.

So who are the beneficiaries of this unique business?

The chairman and directors get their fees, the CEO gets his massive salary, the CFO gets his cop, and the sales/marketing people all get paid.
......
Do the shareholders really matter to this ASX listing.

The company has money in the bank, they have the safety net of Oracle/Netsuite agency whilst it exists in its current form, and all the employees are getting paid.
Is that really building a dynamic new vibrant company with a future, making a mark for itself and introducing new products/technologies to the market?

As a shareholder, I have no idea where it is heading. All I see is a wages/administration expense in the millions being used to create business for Netsuite/Oracle whilst JCurve spend millions, take all the risk and get paid a pittance.

Better off ditching the Netsuite agency, dispensing with the $8,000,000 salesforce/administration (should be able to sell the customer base ), then concentrating on Riyo and build a new company from scratch with controlled overheads. They have over $4,000,000 in the bank, virtually becoming a new listing.

Using modern media technology to promote the product.

The current direction with expansion into the Asian market with NetSuite is a trip to financial disaster. A market they do not understand and would cost a fortune to develop.

IMO